TripAdvisor Shakes Up Business with Aggressive Hotel Metasearch Integration

TripAdvisor just shook up its business in a way that it hasn’t done for years. After introducing hotel metasearch on smartphones during the fourth quarter, the company said today it will introduce hotel metasearch across tablets and desktops, and complete the project within six months.

Priceline, which is in the process of acquiring Kayak, and Expedia, which is taking a majority stake in Germany’s Trivago, will undoubtedly take note and weigh the repercussions.

Known primarily for its hotel reviews and cost-per-click advertising from hotels and online travel agencies, TripAdvisor, with the introduction of hotel metasearch, likely will send fewer CPC leads to advertisers because the comparison-shopping will take place on TripAdvisor, CEO Stephen Kaufer acknowledged

However, the economics should balance out and be “revenue neutral” because TripAdvisor will be sending companies participating in metasearch more qualified leads, with resulting higher conversion rates, Kaufer added.

New model

Speaking during TripAdvisor’s fourth quarter conference call late today, Kaufer said most of TripAdvisor’s hotel metasearch revenue will be CPC-based, but there will be some revenue-sharing with clients when it’s appropriate for both parties.

He claimed TripAdvisor’s clients are on board with the metasearch push, although it will take time for them to adjust to the new business model, which includes property-level minimum-bidding functionality.

Ironically, Priceline and Expedia, both with pending metasearch initiatives, are major TripAdvisor customers.

Kaufer acknowledged that the idea of direct-booking on TripAdvisor, as opposed to sending leads to third-party sites for booking, has been discussed for years. Read more.

Published In:                                                            By: Dennis Schaal

About hospitalitytechnology

Technology is making greater and greater inroads into our lives. Right from when we wake up in the morning to when we head to sleep – we cannot imagine a life without the gadgets and gizmos that make life easy and interesting. When we travel and stay in hotels, our expectations are no different. We expect all the technological amenities we easily access at home if not more. The hospitality industry in increasingly accessing technology to wow guests, optimize their use of manpower, control hotel functions in an integrated manner and on the whole reduce costs while increasing efficiency. This blog is meant to track these technological changes happening in the hospitality sector. The growing move towards sophisticated hotel ERP, the growing use of cloud computing, the rapidly changing customer facing devices – smart phones and iPads, the increasing security concerns and more. Expect to find interesting articles, whitepapers, thoughts, and observations. Feel free to comment and even mail us content that you don’t mind posted here. Happy reading!
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